Looking at the increasing risk of crypto hacks on various crypto platforms, the exchanges have started to turn to the compliance and surveillance solution providers. These third-party security solution providers help to detect fishy operations related to finance.
Circle, one of the leading crypto firms in space, has also joined forces with such a compliance and surveillance service provider, NICE Actimize. NICE Actimize is a New York-based risk and compliance solutions provider. It especially detects financial crime in several asset classes.
NICE Actimize will be facilitating the crypto exchange with a markets surveillance product for its operations. The product will spot suspicious activity on the exchange platform in real time while obtaining law enforcement information. The product also holds the capacity to find and track those market manipulation carried out with sophistication. Moreover, NICE’ product provides “machine-led detection, decisioning and self-learning capabilities” which can adapt to match the requirement of crypto-related operations.
The Goldman Sachs-powered crypto exchange Circle has executed this decision to work with NICE Actimize, as it recognizes the need for regulation in the crypto market ecosystem. Circle is concerned enough to protect its monthly trading fund of $3 billion from scams like pump n’ dumps, insider trading, and layering.
On its collaboration with NICE, Robert Bench, Circle’s chief compliance officer and lead regulatory counsel noted,
“As a leading crypto finance company, it was important that we work with a leading financial crime solutions provider like Nice Actimize which provides industry-leading solutions for the rapidly changing financial crime, risk and compliance landscape.”
Nice Actimize, which is amongst the colossal risk and compliance service providers, serves both government regulators and financial institutions. To fight any criminal activity, NICE uses methods including pattern recognition and algorithms. It goes through millions of open source references to find and differentiate thousands of cryptocurrency services to get instant alerts signalling to problematic transactions.
Another huge name in the crypto world, Coinbase has also taken actions in order to protect the money of its customers and investors. The largest crypto exchange of the US has acquired surveillance company Neutrino. Neutrino is a Milan, Italy-based startup which has work experience with various cryptocurrency firms along with global law enforcement.
Aside from growing their business, crypto exchanges are now pretty focussed on security purposes. Notably, seven cryptocurrency exchanges are already utilizing Nasdaq Inc’s SMARTS trade surveillance. The technology examines real-time trading activity and generates alerts with the exchange if it finds doubtful trading activity.